Enforcement Directorate And Income Tax Officials Continue Their Investigation At SCDCC Bank

The Enforcement Directorate officials, as well as the Investigation group from the Income Tax Department, continue on with their investigation last December 27 against the South Canara District Central Cooperative Bank’s supposed money laundering at Mangalore, its primary office.

An investigation of the South Canara District Central Cooperative Bank

The officials went to the office Monday, too, as part of the investigation.

On Tuesday, the bank was requested to pause their transactions for more than a couple of hours in order for the officials to examine the computer system.

A senior official from the Enforcement Directorate mentioned to The Hindu that they audited statements presented by the bank in regard to notices which were issued earlier.

They also verified specific “doubtful” accounts following the audit. According to him, whether or not the bank participated in money laundering is going to be clear in the next days.

Other District Central Cooperative Banks under investigation

Aside from the SCDCC Bank, six of the other DCC banks located in the State are also subject to investigation from the Enforcement Directorate.

In the Enforcement Directorate’s December 22 notice, it requested banks to provide details of every accounts that had more than Rs 2.5 lakh cash deposits made during the period of November 8 to November 15. It also asked for the details of the beneficiaries that received Rs 2.5 lakh or greater from the different money transfer methods.

M.N. Rajendra Kumar, the bank president, mentioned last Saturday that the functioning of the bank is transparent, aside from having submitted all the needed details and information to the Enforcement Directorate. He added that during the period of November 9 to November 14, the bank had seen a ₹ 386.65 crore deposit throughout all their branches and cooperative societies.

Conclusion

Paying taxes is a responsibility to a country. Any concealment of illegally obtained money, or money laundering, is a form tax avoidance which is why tax officials investigate these cases.

Let this be an example that not everything can be hidden. Even if these banks investigated are not deemed guilty yet, investigations are conducted as precautions.

Individuals, like financial institutions, are also subject to these tax investigations. It is causes headache and monetary burden for those investigated. A tax investigation insurance can help during this time to unburden one from costs that come with these investigations.